The proposed budget includes an increase for the LAFD, funding 227 new positions and expanding resources. (photo by Edwin Folven)

The dire financial situation facing Los Angeles is going to have impacts throughout the city, and the wide-ranging effects became clearer on April 21 when Mayor Karen Bass released her proposed budget for the 2025-26 fiscal year.

The budget lays out a strategic plan to close a nearly $1 billion gap that includes 1,647 employee layoffs, a four-department consolidation, the removal of vacant job positions and the elimination of three commissions. Bass said Los Angeles is facing tough financial times and layoffs of city employees is “a decision of absolute last resort.” City officials familiar with the budget said swings in the economy due to national uncertainty are causing declines in revenues from sales taxes, hotel taxes and business taxes. The city is also facing a steep increase in liability payouts that are projected to exceed $300 million.

The mayor’s proposed budget will be considered by the Los Angeles City Council, and the public will have multiple opportunities to weigh in. The budget must be approved by the City Council by June 1.

While layoffs are included, the approximately $13.9 billion proposed budget preserves funding for public safety and increases resources for the Los Angeles Fire Department. The LAFD budget increases by $103.8 million, from $819.6 million in 2024-25 to $923.4 million, funding 227 new positions, including more paramedics and fast response vehicles. The Los Angeles Police Department will have a slight increase in its budget from $1.981 billion to $1.987 billion. The budget allocates approximately $900 million for homelessness services, maintaining similar funding levels from past years in an effort to continue progress addressing the housing crisis.

“This budget makes investments to continue our progress on critical challenges like decreasing homelessness and crime while bringing the city’s finances into balance and driving change including common sense consolidations of related departments,” Bass said. “Homelessness is down. Crime is down. These are tough challenges and our progress shows we can do anything in this city of limitless potential.”

The layoffs will occur across many city departments. The LAPD’s civilian workforce will have largest number of cuts with 403. The Los Angeles Department of Transportation will experience 262 job cuts, followed by the Bureau of Sanitation (159), Street Services (130), City Planning (114) and General Services (110). Combined, the job cuts amount to $114.2 million in savings.

The proposed budget consolidates the departments of Aging, Economic and Workforce Develop-ment and Youth Development into the Community Investment for Families Department. The Health Commission, Innovation and Performance Commission and Climate Emergency Mobilization Commission will be eliminated under the proposed budget. Approximately 1,074 vacant positions in which someone recently retired or otherwise left employment with the city are being eliminated for the coming year, resulting in $100.1 million in savings.

Los Angeles City Councilwoman Katy Yaroslavsky, 5th District, who is chair of the Budget Committee, said the budget presents stark realities and challenges but she is confident the city will meet public needs.

“It’s certainly a tough budget year, and we knew that layoffs were going to have to be on the table given the size of the deficit. I think we’re focused on doing as much as we can to preserve core city services and core city functions, and being strategic about really thinking about what those core city services are,” Yaroslavsky said. “This is a chance for us to start to put the city on a long-term path of fiscal solvency and right-size some of the departments. When people say, ‘The city doesn’t know how to get out of its own way in terms of approving developments or whatever,’ maybe this is a chance for us to streamline some of that. And if we do have to make cuts, let’s be strategic about it so we’re solving problems rather than creating new ones.”

Yaroslavsky held a public meeting on the budget at Pan Pacific Park on April 23 and invites residents to an in-person session on Saturday, April 26, at 11 a.m. at the Belmont Village Senior Living Westwood. The council will hold two formal public comment sessions on the budget on Friday, April 25, at the Van Nuys City Hall building, 14410 Sylvan St., and on Monday, April 28, at Los Angeles City Hall, 200 N. Spring St. Afterwards, the Budget Committee will enter internal discussions with city departments and conduct technical assessments through mid-May before approving revisions and sending the budget back to the full City Council for a vote.

Members of the public interested in attending Yaroslavsky’s listening session on April 26 in Westwood must RSVP by visiting docs.google.com/forms/d/e/1FAIpQLSeaK01fFKH2Tp4jd8vSKdPtYS6UblvJb-co_DpAN0vplHS5-Q/viewform. For information about Los Angeles City Council meetings including agendas, visit clerk.lacity.gov/calendar.